[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
92_HB5159enr HB5159 Enrolled LRB9211688AGmb 1 AN ACT in relation to executive agencies. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Rural Bond Bank Act is amended by 5 changing Section 3-3 as follows: 6 (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3) 7 Sec. 3-3. Bonds and notes of the Bank. 8 (a) The Bank may issue its bonds and notes from time to 9 time in any principal amounts that it considers necessary to 10 provide funds for any of the purposes authorized by this Act, 11 including: 12 (1) the making of loans; 13 (2) the payment, funding or refunding of the 14 principal of, or interest or redemption premiums on, any 15 bonds issued by the Bank, whether the bonds or interest 16 to be funded or refunded have or have not become due or 17 subject to redemption before maturity in accordance with 18 their terms; 19 (3) the establishment or increase of reserves to 20 secure or to pay bonds or interest on the bonds; and 21 (4) all other costs or expenses of the Bank 22 incident to and necessary or convenient to carry out its 23 corporate purposes and powers. 24 (b) Except as expressly provided otherwise in this Act 25 or by the Bank, every issue of bonds shall be general 26 obligations of the Bank payable out of any revenues or funds 27 of the Bank, subject only to any agreements with the holders 28 of particular bonds pledging any particular revenues or 29 funds. General obligation bonds may be additionally secured 30 by a pledge of any grants, subsidies, contributions, funds or 31 money from the federal government, the State, any HB5159 Enrolled -2- LRB9211688AGmb 1 governmental unit, any person or a pledge of any income or 2 revenues, funds or money of the Bank from any source. 3 Not less than 30 days prior to the commitment to issue 4 its bonds, or the making of loans or the purchasing of 5 securities for the purpose of financing residential 6 properties or related improvements, the Bank shall provide 7 notice to the Executive Director of the Illinois Housing 8 Development Authority. Within 30 days after notice is 9 provided, the Illinois Housing Development Authority shall 10 either in writing express interest in financing the 11 residential property or related improvements or notify the 12 Bank that it is not interested in providing such financing 13 and the Bank may finance it or seek alternative financing. 14 (c)(1) The Bank may issue its notes for any 15 corporate purpose of the Bank from time to time, in any 16 principal amounts that it considers necessary, and may 17 renew or pay and retire or refund the notes from the 18 proceeds of bonds or of other notes, or from any other 19 funds or money of the Bank available or to be made 20 available for that purpose in accordance with any 21 contract between the Bank and the noteholders, not 22 otherwise pledged. The notes shall be issued in the same 23 manner as bonds. The notes and the resolution or 24 resolutions authorizing the notes may contain any 25 provisions, conditions or limitations which the bonds or 26 a bond resolution of the Bank may contain. 27 (2) Unless provided otherwise in any contract 28 between the Bank and the noteholders, and unless the 29 notes have been otherwise paid, funded or refunded, the 30 proceeds of any bonds of the Bank issued, among other 31 things, to fund such outstanding notes, shall be held, 32 used and applied by the Bank to the payment and 33 retirement of the principal of these notes and the 34 interest due and payable on the notes. HB5159 Enrolled -3- LRB9211688AGmb 1 (3) The Bank may make contracts for the future sale 2 from time to time of the notes under which the purchaser 3 is committed to purchase the notes from time to time on 4 terms and conditions stated in the contracts. The Bank 5 may pay any consideration that it determines proper for 6 these commitments. 7 (d) Whether or not the bonds or notes of the Bank are of 8 such form and character as to be negotiable instruments under 9 Article 8 of the Uniform Commercial Code, the bonds and notes 10 shall be and are made negotiable instruments within the 11 meaning of and for all the purposes of the Uniform Commercial 12 Code, subject only to the provisions of the bonds and notes 13 for registration. 14 (e) Bonds or notes of the Bank shall be authorized by 15 resolution of the Bank and may be issued in one or more 16 series. The resolution or resolutions may provide: 17 (1) the date or dates the bonds or notes will bear; 18 (2) the time or times the bonds or notes will 19 mature; 20 (3) the rate or rates of interest per year the 21 bonds or notes will bear; 22 (4) the denomination or denominations of the bonds 23 or notes; 24 (5) the form of the bonds or notes, either coupon 25 or registered; 26 (6) the conversion or registration privileges 27 carried by the bonds or notes; 28 (7) the rank or priority of the bonds or notes; 29 (8) the manner of execution of the bonds or notes; 30 (9) the sources, medium and place or places, within 31 or outside this State, of payment; and 32 (10) the terms of redemption of the bonds or notes, 33 with or without premium. 34 (f) Bonds or notes of the Bank may be sold at public or HB5159 Enrolled -4- LRB9211688AGmb 1 private sale at the time or times and at the price or prices 2 determined by the Bank. 3 (g) Upon approval of the Governor, except as otherwise 4 provided herein, bonds or notes of the Bank may be issued 5 under this Act without obtaining the consent of any other 6 department, division, commission, board, bureau or agency of 7 the State, and without any other proceeding or the happening 8 of any other conditions or things than those proceedings, 9 conditions or things which are specifically required by this 10 Act. Approval of the Governor is not required for issuances 11 of bonds or notes as to which the Bank has determined that 12 subsection (c) of Section 2-6 shall not apply. 13 (h) The Bank may from time to time issue its notes as 14 provided in this Act and pay and retire or fund or refund 15 those notes from proceeds of bonds or of other notes, or from 16 any other funds or money of the Bank available or to be made 17 available for those purposes in accordance with any contract 18 between the Bank and the noteholders. Unless provided 19 otherwise in any contract between the Bank and the holders of 20 notes, and unless the notes have been otherwise paid, funded 21 or refunded, the proceeds of any bonds of the Bank issued, 22 among other things, to fund those outstanding notes, shall be 23 held, used and applied by the Bank to the payments and 24 retirement of the principal of the notes and the interest due 25 and payable on the notes. 26 (i) The total aggregate original principal amount of 27 all bonds and notes issued by the Bank shall not exceed 28 $245,000,000, excluding bonds and notes issued to refund 29 outstanding bonds and notes$200,000,000. No more than 30 $60,000,000$50,000,000in aggregate original principal 31 amount of all bonds and notes issued by the Bank shall be 32 used to purchase local governmental securities issued by 33 governmental units located in a county having a population in 34 excess of 3,000,000 or in a County contiguous with a county HB5159 Enrolled -5- LRB9211688AGmb 1 having a population in excess of 3,000,000. All bonds and 2 notes issued by the Bank heretofore shall be deemed to be 3 included in said limits. 4 The bonds and notes issued by the Bank may bear interest 5 at such rate or rates not exceeding the maximum rate 6 permitted by the Bond Authorization Act. 7 (j) The State of Illinois pledges to and agrees with the 8 holders of the bonds and notes of the Bank issued pursuant to 9 this Act that the State will not limit or alter the rights 10 and powers vested in the Bank by this Act so as to impair the 11 terms of any contract made by the Bank with those holders or 12 in any way impair the rights and remedies of those holders 13 until those bonds and notes, together with interest thereon, 14 with interest on any unpaid installments of interest, and all 15 costs and expenses in connection with any action or 16 proceedings by or on behalf of such holders, are fully met 17 and discharged. In addition, the State pledges to and agrees 18 with the holders of the bonds and notes of the Bank issued 19 pursuant to this Act that the State will not limit or alter 20 the basis on which State funds are to be paid to the Bank as 21 provided in this Act, or the use of such funds, so as to 22 impair the terms of any such contract. The Bank is authorized 23 to include these pledges and agreements of the State in any 24 contract with the holders of bonds or notes issued pursuant 25 to this Act. 26 (Source: P.A. 89-211, eff. 8-3-95; 90-709, eff. 8-7-98.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.